Services marketing 5th edition zeithaml test bank

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Chapter 08 - Service Recovery

Chapter 08 Service Recovery Multiple Choice Questions 1. (p. 214) _____ describes what the owner of the rehabilitation center did when he gave a customer who was complaining that his therapist was an hour late for their appointment a credit for one free hour of therapy.

A. Service recovery B. Service paradox C. Service inconsistency D. Outcome fairness E. Procedural recovery

Difficulty: Moderate

2. (p. 213) ________ refers to the actions taken by an organization in response to a service failure.

A. Service recovery B. Service paradox C. Service inconsistency D. Outcome fairness E. Procedural recovery

Difficulty: Easy

3. (p. 214) Which of the following statements about service failure and service recovery is true?

A. Those customers who never complain are as likely to repurchase as those who had a satisfying service experience B. Resolving customer problems effectively has a strong impact on customer satisfaction and loyalty C. All firms employ effective recovery strategies D. Effective service recovery should not be expected to improve overall service performance E. All of the above statements about service failure and recovery are true

Difficulty: Challenging

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Chapter 08 - Service Recovery

4. (p. 215) A florist had promised to have the bridal flowers delivered to the wedding rehearsal dinner by 6 p.m. Because of vehicle problems, the flowers did not arrive until the meal was nearly over and the bride and her mother were very upset. To show how sorry he was for the poor service, the florist put extra flowers in the bridal bouquet and gave each mother and grandmother a free orchid corsage. The bride and her mother were extremely pleased with the extra flowers and have recommended the florist to a number of their friends. The florist is wondering if he shouldn't deliberately underdeliver other jobs, compensate the consumer with some upgrade and benefit from even more positive feedback. The florist is responding to the: A. Baker's dozen paradigm B. Recovery paradox C. Halo effect D. Service dilemma E. Service quandary

Difficulty: Challenging

5. (p. 215) The _______ suggests an initially disappointed customer who has experienced good service recovery might be even more satisfied and loyal as a result.

A. Baker's dozen paradigm B. Recovery paradox C. Halo effect D. Service dilemma E. Service quandary

Difficulty: Easy

6. (p. 219) A consumer is more likely to complain when the: A. Flowers he ordered for his wife's birthday are not delivered B. Big Mac bought in a drive-through comes with pickles even though the special order said no pickles C. Icing on the bakery cake is dark chocolate instead of milk chocolate as ordered D. Mechanic fills the radiator with antifreeze instead of water E. Repair person is 30-minutes late

Difficulty: Moderate

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Chapter 08 - Service Recovery

7. (p. 219) A consumer is more likely to complain when: A. The individual's involvement with the product being purchased is low B. The level of ego involvement in the purchase is high C. He or she is the only one who experienced service failure D. The purchase is one that is made routinely E. Service failure costs less than $5.00

Difficulty: Moderate

8. (p. 220-221) People who complain can be categorized as: A. Irates, passives and aggressives B. Passives, activitists, liaisons and negativists C. Activists, mediators, chronic and passives D. Voicers, irates, activists and passives E. Aggressives, passives and mediators

Difficulty: Easy

9. (p. 220) A person who is a(n) _____ is a type of complainer who is unlikely to say anything to the service provider. This type of complainer often doubts the effectiveness of complaining because of a belief that the consequences will not merit the time and effort they will expend complaining.

A. Irate B. Passive C. Aggressive D. Activist E. Voicer

Difficulty: Easy

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Chapter 08 - Service Recovery

10. (p. 220) The carpenter came to install the new flooring in the Barry kitchen two weeks ago.

Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a passive type when it comes to complaining would react to this by: A. Firing the original carpenter and hiring another one B. Taking no action whatsoever C. Complaining to the Better Business Bureau about the terrible service D. Threatening to sue the carpenter if he didn't return immediately E. Complaining daily to the carpenter's answering machine

Difficulty: Challenging

11. (p. 220-221) The carpenter came to install the new flooring in the Barry kitchen two weeks ago. Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is a voicer type when it comes to complaining would react to this by: A. Assuming he had done something to alienate the carpenter B. Taking no action whatsoever C. Spreading negative word of mouth about the carpenter to all of his or her friends and relatives D. Confronting the carpenter at another job site and demanding to know when he would be back to finish the floor E. Hiring another carpenter to finish the job

Difficulty: Challenging

12. (p. 220-221) A business traveler checked into a Hyatt hotel and was given a room next to the elevator. When he turned on the television, he was greeted with a Hyatt customer service survey. He immediately took advantage of having the survey to let Hyatt know how unhappy he was with his room location. The business traveler would most likely be classed as a(n) _____ type.

A. Irate B. Passive C. Voicer D. Aggressive E. Mediator

Difficulty: Moderate

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Chapter 08 - Service Recovery

13. (p. 221) The carpenter came to install the new flooring in the Barry kitchen two weeks ago.

Once he had removed the old flooring, he announced he needed to go get a sander to smooth out the subflooring. He has not been back. A person who is an irate type when it comes to complaining would react to this by: A. Taking no action whatsoever B. Assuming he had done something to alienate the carpenter C. Using the phone to check up on the status of the carpenter at most once a week D. Begging the carpenter to come back and finish the job E. Firing the first carpenter and hiring another one who is willing to complete the job

Difficulty: Challenging

14. (p. 221) A consumer who is more likely to engage in negative word-of-mouth than any other type of consumer is called a(n): A. Irate B. Annoyance C. Aggressive D. Activist E. Voicer

Difficulty: Easy

15. (p. 221) The type of complainer that is called a(n) _____ has an above average propensity to complain. They have a very optimistic sense of the potential positive consequences of all types of complaining.

A. Irate B. Passive C. Aggressive D. Activist E. Voicer

Difficulty: Easy

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Chapter 08 - Service Recovery

16. (p. 223) _____ concerns the results that customers receive from their complaints.

A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Difficulty: Easy

17. (p. 223) _____ focuses on the interpersonal treatment received by the consumer during the complaint process.

A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Difficulty: Easy

18. (p. 223) Which of the following is the BEST example of outcome fairness?

A. The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly B. Miriam decided the missing button was not important enough to make another trip to the cleaners and complain C. The sign posted on the wall stated the hair salon would not fix the hair of anyone who did not have an appointment D. The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke halfway through showing the newest Brad Pitt movie E. The hotel refused to help a man find a room for the night when he missed his scheduled airplane flight

Difficulty: Moderate

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Chapter 08 - Service Recovery

19. (p. 223) In addition to compensation, customers expect _____. In other words, they expect fairness in terms of policies, rules and timeliness of complaint process.

A. Functional equity B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Difficulty: Easy

20. (p. 224) Many frequent flyers have missed their flights due to long, slow security checks before being allowed to enter the airline's terminal. This policy designed to ensure safe flights has resulted in problems associated with perceived: A. Functional equity B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Difficulty: Moderate

21. (p. 224) Which of the following is the BEST example of procedural fairness?

A. The restaurant charged the man for two meals when he sent back his overcooked steak and demanded one cooked correctly B. Miriam decided the missing button was not important enough to make another trip to the cleaners and complain C. When Tia walked into the salon and asked to have her hair cut, the receptionist pointed to the sign that read, "To keep from inconveniencing our customers, this hair salon will not fix the hair of anyone who does not have an appointment” D. The small movie theater gave all patrons two-free movie tickets for the night of their choice when the movie projector broke half way through showing the newest Brad Pitt movie E. The hotel refused to help a man find a room for the night when he missed his scheduled flight

Difficulty: Challenging

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Chapter 08 - Service Recovery

22. (p. 224) When the dentist's office bills the patient who had an appointment but did not show up for it and did not cancel the appointed, it is an example of _____ because the patient was made aware of the policy before making the appointment.

A. Functional fairness B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Difficulty: Moderate

23. (p. 224) Adam was working late in his hotel room when the light bulb in the lamp at his desk burned out. He called the front desk and asked for a replacement bulb. The desk manager told Adam that a new one would be provided tomorrow morning and that he did not have the key to the stockroom. Adam tried to explain how much he needed the light to finish his sales report, but the manager was polite but adamant that he could not help. This is an example of: A. Functional unfairness B. Procedural unfairness C. Interactional unfairness D. Service inequity E. Situational unfairness

Difficulty: Challenging

24. (p. 224-225) Once Mariko had carried her dry cleaning to the car, she took a minute to see if the cleaners had removed the stain from her wool skirt. The stain was still there, so Mariko took the skirt back inside to the cleaner. When Mariko showed the stained skirt to the cleaner employee, she shrugged and said, "I guess you want us to reclean the skirt"? Mariko responded, "Yes, please". The employee took the skirt, gave Mariko a dirty look and began sorting some items on the counter. Mariko experienced: A. Functional unfairness B. Procedural unfairness C. Interactional unfairness D. Service inequity E. Situational unfairness

Difficulty: Challenging

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Chapter 08 - Service Recovery

25. (p. 224-225) As the flight attendant listened to the business traveler complain about having to sit in the plane and wait for two hours before the plane took off, the attendant sorted through some magazines, got a blanket for another passenger and clearly ignored the legitimate complaints of the businessperson. This is clearly a problem with: A. Functional fairness B. Service equity C. Interactional fairness D. Distributive fairness E. Relationship management

Difficulty: Moderate

26. (p. 224-225) ________ refers to the fact that a complaining customer expects to be treated fairly, with care and honesty.

A. Functional equity B. Procedural fairness C. Interactional fairness D. Service equity E. Outcome fairness

Difficulty: Easy

27. (p. 225) A pseudo-relationship occurs when A. The service encounter is static B. The customer interacts many times with the same company, but with different service providers C. The company interacts with different members of a household D. Frequency of service is greater than service reach E. The service provider has accepted the validity of the service paradox

Difficulty: Easy

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Chapter 08 - Service Recovery

28. (p. 226) All of the following are causes for customer's brand switching EXCEPT: A. Ethical problems B. Pricing C. Inconvenience D. A service paradox E. Core service failure

Difficulty: Moderate

29. (p. 226-235) Which of the following is NOT an example of a commonly used service recovery strategy?

A. Learn from recovery experience B. Act quickly C. Encourage and track complaints D. Implement the service paradox E. Learn from lost customers

Difficulty: Moderate

30. (p. 227) L. L. Bean, the catalog retailer, promises its customers, "100 percent satisfaction in every way, forever". Which service recovery strategy does L. L. Bean use?

A. Make the service fail safe B. Learn from lost customers C. Treat customers reactively D. Implement the service paradox E. Use procedural fairness

Difficulty: Challenging

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Chapter 08 - Service Recovery

31. (p. 227) With which service recovery strategy is total quality management (TQM) most closely associated?

A. Make the service fail safe B. Learn from lost customers C. Treat customers fairly D. Encourage and track complaints E. Act quickly

Difficulty: Moderate

32. (p. 228) What are poka-yokes?

A. Customers who have a propensity to complain B. Automatic warnings or controls to ensure mistakes don't happen C. Service failures D. Common sources of complaints E. Methods for tracking complaints

Difficulty: Easy

33. (p. 228) Which of the following is an example of poka-yokes?

A. Lynsey is so upset with the service she got at the travel agency that she is launching a onewoman campaign to put it out of business B. The business owner complains to the licensing board every time the next-door restaurant's employees forget to put the lids on the garbage cans C. The day care center has carefully labeled bins for each parent to fill with food, diapers, clothes and toys so that one child's stuff will not confused with another's D. The customer refused to pay the delivery fee because the package arrived two days late E. The dentist's office staff regularly does lost customer research

Difficulty: Challenging

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Chapter 08 - Service Recovery

34. (p. 229) Bruce was driving to work yesterday when he was nearly run off the road by a speeding furniture delivery truck. On the back of the truck was a phone number to call if you believed the driver was not handling the truck safely. Rather than deciding to never buy furniture from this furniture company, Bruce called the company and complained about the truck driver. The person who took his call thanked Bruce for his concern, apologized for the driver and promised to reprimand him. Which service recovery strategy was the furniture store using?

A. Make the service fail safe B. Learn from lost customers C. Use procedural fairness D. Encourage and track complaints E. Treat customers proactively

Difficulty: Challenging

35. (p. 230) When DeWayne complained out loud that the hotel restaurant did not serve breakfast late enough in the morning, a hotel worker overheard him and went to the kitchen.

When the hotel worker returned, he presented DeWayne with a plate of sweet rolls, a cup of coffee and the hotel's apology for having to close down the breakfast service early. Which service recovery strategy is being used in this example?

A. Make the service fail safe B. Learn from lost customers C. Treat customers proactively D. Use procedural fairness E. Act quickly

Difficulty: Challenging

36. (p. 231) The empowerment of employees makes which of the following service recovery strategies easier to implement?

A. Make the service fail safe B. Learn from lost customers C. Treat customers fairly D. Encourage and track complaints E. Act quickly

Difficulty: Moderate

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Chapter 08 - Service Recovery

37. (p. 231-232) Roger Pack is a breeder of Pomeranian dogs. He has used the same grooming salon for his dogs for the last 10 years. When a new groomer accidentally trimmed too much off of one of his show dog's hind quarters, he was upset. He decided not to make a big deal of the event because of his long-term dealings with the salon owner. Which service recovery strategy is being used in this example?

A. Make the service fail safe B. Cultivate relationships with customers C. Treat customers proactively D. Use procedural fairness E. Learn from lost customers

Difficulty: Challenging

38. (p. 232-233) By noting that a number of customers had complained about late bus arrivals at one particular stop, the bus line rerouted the bus away from a heavy traffic area. By increasing its miles traveled slightly, the bus was able to improve its arrival time substantially at the stop where it had formerly been perpetually late. Which service recovery strategy did the bus line use?

A. Make the service fail safe B. Learn from recovery experiences C. Treat customers fairly D. Encourage and track complaints E. Act quickly

Difficulty: Challenging

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Chapter 08 - Service Recovery

39. (p. 232-233) When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent they are bosses in their own offices but are totally controlled by the airlines when they travel. Canadian Airline instituted gate-side business centers, shower facilities and massage chairs as well as continuous "power to the seat" for those who want to work on their laptops. By listening to its business travelers and providing the services they want, Canadian Airline's sales started increasing. What service recovery strategy did Canadian Airline use?

A. Make the service fail safe B. Learn from recovery experience C. Treat customers reactively D. Encourage and track complaints E. Act quickly

Difficulty: Challenging

40. (p. 235) Kate recently learned to play golf. Last week, she decided to try a new golf course.

She signed in to play and was given the keys to an electric golf cart without any instructions on how to operate it. After she drove the cart into a lake, she swore never to play golf again.

According to Kate, "There was just too many things you had to know before you could become a real golfer". Two months later, the golf course manager called Kate and asked why she had not returned to play another game. Which service recovery strategy is being used in this example?

A. Make the service fail safe B. Learn from lost customers C. Treat customers proactively D. Use procedural fairness E. Learn from lost customers

Difficulty: Challenging

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Chapter 08 - Service Recovery

41. (p. 235) When its sales were declining, Canadian Airline conducted a marketing survey to understand the expectations of the business traveler, its target market. It learned business travelers resent that they are bosses in their own offices but are totally controlled by the whims of the airlines when they travel. If Canadian Airline had only surveyed former customers who were still in their database, it would have used which service recovery strategy?

A. Critical incident B. Make the service fail safe C. Welcome and encourage complaints D. Learn from lost customers E. Customer empowerment

Difficulty: Challenging

42. (p. 235) Kelso Massage Therapy promises its clients that there wait for a massage will be less than fifteen minutes or the massage is free. Which service recovery strategy does Kelso Massage Therapy use?

A. Offering a guarantee B. Acting quickly C. Doing it right the first time D. Implementing the service paradox E. Acting proactively instead of reactively

Difficulty: Moderate

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Chapter 08 - Service Recovery

43. (p. 236) When Shealah hired the housecleaning service, she asked them to use her hypoallergenic cleaning supplies. Instead the workers used their own and Shealah had to lose a day from work because of her allergic reaction to the smell of the cleaners. When Shealah looked at the service guarantee that the workers had left, she found that she could get a reimbursement for all of her out-of-pocket expenses if she had a notarized letter from her doctor describing her condition and her reaction, an affidavit from the workers that they had used the wrong cleaners and another notarized statement that she would not have become ill if the workers had used the right cleaners. This service guarantee is ineffective because it is NOT: A. Easy to invoke and collect B. Customer-focused C. Condition-specific D. Challenging but realistic E. Standardized by situation

Difficulty: Challenging

44. (p. 236) PSE&G is a utility company. One of its service guarantees is to keep all appointments. If PSE&G fails to keep an appointment mutually agreed upon by the customer and the company, PSE&G will credit residential customers' accounts by $25 and business customers' accounts by $100. The guarantee only applies to appointments for meter readings, account investigation, gas service, gas appliance repair and both electric and gas meter work scheduled three days in advance. Which of the following statements about PSE&G's service guarantee is FALSE? A. PSE&G's guarantee is easy to understand and communicate B. PSE&G's guarantee is unconditional C. PSE&G's guarantee is meaningful D. PSE&G's guarantee is easy to invoke E. PSE&G's guarantee is qualitative

Difficulty: Challenging

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Chapter 08 - Service Recovery

45. (p. 236) Many carwashes offer free replacement washes to car owners if it rains or snows within 24 hours of when they had their cars cleaned at the carwash. Because people who would take advantage of this service guarantee are the ones that are concerned about the appearance of their car, this service guarantee: A. Shows the absence of a customer focus B. Illustrates the importance of employee empowerment C. Does not fit the service provider's image D. Is very meaningful E. Is unconditional

Difficulty: Moderate

46. (p. 238) Which of the following statements about the benefits of service guarantees is true?

A. To be valid, service guarantees must be in writing B. A good guarantee forces the company to focus on its customers C. Employee morale can be adversely affected by service guarantees D. The guarantee negates the service recovery strategy of act quickly E. A good guarantee will generate a lot of feedback-most, if not all of it, useless

Difficulty: Easy

47. (p. 238) Which of the following is NOT a benefit provided by a service guarantee?

A. The ability to generate meaningful and relevant feedback from customers B. The ability to set clear standards for the organization C. Away to improve employee morale D. Away to increase a customer's sense of risk E. Away to create useful feedback that can be integrated into continuous improvement efforts

Difficulty: Moderate

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Chapter 08 - Service Recovery

48. (p. 238) An effective service guarantee would never be described as: A. Unconditional B. Easy to invoke and collect C. Standardized and/or generic D. Meaningful E. Easy to understand and communicate

Difficulty: Moderate

49. (p. 238-239) For which of the following service providers would a guarantee be inappropriate?

A. A child care provider who has a reputation for providing the best and most responsible child care in a community B. A truck rental company C. An engine tune-up at a car dealership D. A travel agency E. A university

Difficulty: Challenging

50. (p. 239) When is a service guarantee inappropriate?

A. When prices for the service are high B. When negative impact of unsolved problems is high C. When service quality is truly uncontrollable D. When company has a poor image for service quality E. When company depends on frequent customer purchases

Difficulty: Moderate

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Chapter 08 - Service Recovery

True / False Questions 51. (p. 214) Customers who experience a service failure and do not complain are more likely to make a repurchase than those who do complain.

FALSE

Difficulty: Moderate

52. (p. 217) The recovery paradox states that all recovery service efforts deepen the long-term relationship between the customer and the service provider.

FALSE

Difficulty: Challenging

53. (p. 219) People who do not complain often believe that complaining is a waste of time and effort.

TRUE

Difficulty: Easy

54. (p. 220) Oftentimes the personal values of the category of complainers called passives prevent them from complaining about a service even when they should.

TRUE

Difficulty: Moderate

55. (p. 221) The category of complainers called irates has a very optimistic sense of the potential positive consequences of all types of complaining.

FALSE

Difficulty: Moderate

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Chapter 08 - Service Recovery

56. (p. 223) When in doubt of how to treat a customer who has not been provided a service as promised, the service provider should always try to overcompensate that customer.

FALSE

Difficulty: Challenging

57. (p. 223) An example of procedural inequity occurred when Logan was rudely told he could not golf at a particular course because his clubs were not sanctioned by the U.S. Golf Association.

FALSE

Difficulty: Challenging

58. (p. 227) The first rule of service quality is to do it right the first time.

TRUE

Difficulty: Easy

59. (p. 229) A trucking company that has a toll free number to call if the driver of the truck does not follow the rules of the road is using a service recovery tool.

TRUE

Difficulty: Moderate

60. (p. 230) The empowerment of employees is a useful tool in service recovery.

TRUE

Difficulty: Moderate

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Chapter 08 - Service Recovery

61. (p. 235) Formal market research of lost customers' motivations is a waste of resources.

FALSE

Difficulty: Easy

62. (p. 235) A guarantee is a particular type of service recovery tool.

TRUE

Difficulty: Easy

63. (p. 238) Studies of service guarantees indicate their existence has no impact on employee morale.

FALSE

Difficulty: Challenging

64. (p. 236) Guarantees that are written by the legal department are generally more meaningful to customers than any other type.

FALSE

Difficulty: Moderate

65. (p. 238-240) Service guarantees are appropriate for any company and every service situation.

FALSE

Difficulty: Easy

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Chapter 08 - Service Recovery

Short Answer Questions 66. (p. 213) What is service recovery?

The action taken by an organization in response to a service failure.

Difficulty: Easy

67. (p. 214, 218) Will and Thom NaJami are going to open a swimming pool service this summer.

They will put in pools, repair damaged ones and provide a pool-cleaning service. Why should they consider designing and implementing an effective service recovery strategy?

An effective service recovery strategy can increase customer satisfaction and loyalty and generate positive word of mouth. A well-designed service recovery strategy also provides information that can be used to improve service as part of a continuous improvement effort.

By making adjustments to service processes, systems and outcomes based on learning from service recovery experiences, companies increase the likelihood of "doing it right the first time". In turn, this reduces costs of failures and increases initial customer satisfaction.

Also, there are tremendous downsides to having no service recovery or ineffective service recovery strategies. Poor recovery following a bad service experience can lead to customers who are so dissatisfied they become "terrorists", actively pursuing opportunities to openly criticize the company. Furthermore, repeated service failures without an effective recovery strategy in place can aggravate even the best employees. The costs in employee morale and even lost employees can be huge, but often overlooked, costs of not having an effective service recovery strategy.

Difficulty: Challenging

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Chapter 08 - Service Recovery

68. (p. 215-216) Comment on the following statement: "The recovery paradox is a superior strategy to the 'Do it right the first time' strategy".

The recovery paradox basically encourages service failure. According to the service paradox, in the compensation of the customer for the failure, the customer is so happy that he or she becomes even more loyal to the customer. It doesn't work that way. Reliability is the most critical determinant of service quality. Encouraging service failures is a ludicrous idea.

Empirical research indicates customers weigh their most recent experiences heavily in determining whether to buy again from the same provider. If the experience is negative, overall feelings about the company will decrease and repurchase intentions will also diminish significantly. Unless the recovery effort is absolutely superlative, it cannot overcome the negative impact of the initial experience enough to build repurchase intentions beyond where they would be if the service had been provided right the first time. The adage "Do it right the first time" is still the best bet. However, when a failure does occur, then every effort at superior recovery should be made.

Difficulty: Challenging

69. (p. 220) Which type of complainer has sometimes been called the service provider's best friend?

Voicer.

Difficulty: Easy

70. (p. 221) When Tom had the satellite dish placed on the roof of his house, the installer dislodged and made no attempt to replace a half dozen roofing shingles. Tom has complained several times to his friends about the lousy service, but he would never complain to the Better Business Bureau, nor is he likely to recommend the installer to friends. What kind of complainer is Tom? Irate.

Difficulty: Moderate

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Chapter 08 - Service Recovery

71. (p. 221) Which type of complainer has an above-average propensity to complain and will gladly complain to anyone or anything that will listen?

The activist.

Difficulty: Easy

72. (p. 219) Why would a consumer be more likely to complain about a poorly mended prom dress than burnt toast?

Personal relevance.

Difficulty: Moderate

73. (p. 223) When Robin and Liam arrived at the restaurant, their table was not ready. The hostess gave them free drinks at the bar while they waited for their table to be cleared. What type of fairness does this best represent?

Outcome fairness.

Difficulty: Moderate

74. (p. 223) What kind of fairness is being requested when customers want their complaints handled politely, fairly and honestly?

Interactional fairness.

Difficulty: Moderate

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Chapter 08 - Service Recovery

75. (p. 227) Which service dimension is most important if the service provider has made the service failsafe as its primary service recovery strategy?

Reliability.

Difficulty: Moderate

76. (p. 230) Which service recovery strategy is most closely connected to an employee empowerment strategy?

Act quickly.

Difficulty: Moderate

77. (p. 235) What is the best way to conduct lost customer research?

In-depth interviews administered by skilled interviewers who truly understand the business.

Difficulty: Moderate

78. (p. 236) What kind of a guarantee is a dentist giving that guarantees patients will wait no more than 15 minutes past their appointment or they will be given $5?

Service attribute guarantee.

Difficulty: Moderate

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Chapter 08 - Service Recovery

79. (p. 236) Will and Thom NaJami are going to open a swimming pool service this summer.

They will put in pools, repair damaged ones and provide a pool-cleaning service. They have decided to use a service guarantee as their primary service recovery tool. How can they make sure that their service guarantee is effective?

There are four characteristics for an effective service guarantee. (1) Unconditional. The guarantee should make its promise with no strings attached. (2) Meaningful. It should guarantee elements of the service that are important to the customer. The payout should cover fully the customer's dissatisfaction. (3) Easy to understand and communicate. Customers need to understand what to expect and employees need to understand what to do. (4) Easy to invoke and collect. There should not be a lot of hoops or red tape in the way of accessing or collecting on the guarantee. Better students will note that the couple may need to set up one guarantee for each of the three services they are providing.

Difficulty: Challenging

80. (p. 239) A friend of yours is setting up a math tutoring service. She has asked you, "Do all services need to offer customer guarantees"? Explain your answer. Then explain why or why not she should or should not offer a customer service guarantee.

No. The text describes six occasions when a service guarantee is not an appropriate strategy.

(1) If existing service quality in the company is poor, then a customer guarantee is inappropriate. (2) If the company already has a reputation for offering very high quality, then a customer guarantee is inappropriate. (3) If the costs of the guarantee outweigh the benefits, then a customer service guarantee is inappropriate. (4) Companies that market low-risk products do not need to offer a service guarantee. (5) Companies operating in a homogeneous market in which service offerings are very similar do not need a service guarantee. (6) There are some situations in which service quality is truly uncontrollable. For instance, your friend with the tutoring program may not want to offer a customer guarantee because the effectiveness of the tutoring rests so heavily with the effort expended by the customer.

Difficulty: Challenging

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